S&P assigns B to Kissner Milling term loan

Standard & Poor’s said it affirmed its B corporate credit rating on Kissner Milling Co. Ltd. The outlook is stable.

At the same time, S&P assigned a B issue-level rating and 4 recovery rating to Kissner’s proposed $425 million term loan due 2022. The 4 recovery rating on the term loan indicates an expectation for average recovery (30%-50%; higher half of the range) in the event of a payment default.

The company will use the proceeds from the term loan to repay the existing senior secured notes.

“The ratings affirmation reflects our assessment of Kissner’s financial risk profile as ‘highly leveraged’ and its business risk profile as ‘weak,’ both of which are unchanged following the proposed debt issuance, acquisition of BSC, and shareholder distribution,” said S&P credit analyst David Fisher in a news release.

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